KRG letter keeps Sinopec's Addax takeover on track
Letter from Kurdistan Regional Government green lights US$7.2bn deal
Addax Petroleum Corporation has today announced that it has received a letter from the Minister of Natural Resources of the Kurdistan Regional Government (KRG) as part of the conditions set by Chinese oil giant Sinopec for its proposed around US$7.2 billion takeover of the company.
Addax Petroleum entered into a definitive agreement in June that will see Sinopec pay around $46 a share for the Swiss-Canadian company.
Addax Petroleum shares a licence for the Taq Taq oilfield in Kurdistan and the recent thawing of relations between the Iraqi Oil Ministry and the Kurdistan Regional Government (KRG) has meant that the many companies operating in the area have become attractive acquisition targets for the major oil companies.
The offer from Sinopec is subject to a number of conditions including valid acceptances by holders of not less than two thirds of Addax Petroleum shares on a fully diluted basis and receipt of certain regulatory approvals, including the government of The People’s Republic of China.
The offer is expected to close in the third quarter of 2009.